Online video audience in India to reach 500 mn in 2020: Deloitte

Online video audience in India is expected to reach 500 million in 2020, reveals “Technology, Media, and Telecommunications (TMT) Predictions 2020” released by Deloitte Touche Tohmatsu India. The report further states that digital advertising in India predicted to grow at 30 per cent YoY. 5G private networks are set to provide more reliable networks to end users. 

The predictions highlighted in the report for Technology, Media, and Telecommunications sector are aligned with the recently launched Deloitte Global TMT Predictions 2020. 

The India report focuses on six key topics:

  1. Robots on the move: Professional service robots set for double-digit growth
  2. The smartphone multiplier: Toward a trillion-dollar economy
  3. Private 5G networks: Enterprise untethered
  4. Coming to a CDN near you: Videos, games, and much, much more
  5. Ad-supported video: Will the United States follow Asia’s lead?
  6. Cycling’s technological transformation: Making bicycling faster, easier, and safer

The new trend in the digital advertising space 

According to the report, India perhaps is one of the few markets in the world where digital advertising accounts for relatively less – 19 per cent of total estimated AdEx value of around $10 billion, lower than the contribution of Print (29%) and Television (39%) advertising. Deloitte predicts the digital advertisement space will grow by 30 per cent Year on Year in 2020, with mobile advertising contributing 70 per cent of the digital ad revenue, primarily due to growth in video content consumption and increased awareness of the benefits of programmatic advertising. 

Due to existing subsidisation, ad-supported platforms will be able to target a larger market and reach larger MAUs. These platforms are in the process of convincing advertisers to shift some of the TV ad budgets to streaming video by placing forward innovative ad models and personalised content. 

Over-the-top (OTT) video has seen a rapid growth in both demand and supply. Content development and production, partnerships with OTTs and audio/ video on demand players, devices have either developed Content Distribution Networks (CDNs) or have partnered with leading CDNs. India currently has an audience base of 350 million and is predicted to grow to 500 million in 2020. This will give an expected rise to mobile data traffic at a CGAR of 40 per cent to reach 5.5 exabytes per month in 2021 and video is likely to contribute to 75 per cent of this data traffic. Out of the 75 per cent new video audience, rural India is expected to drive the growth of the digital content. 

Jehil Thakkar, Partner, Deloitte India, remarked, “We have witnessed the demand and supply of OTT platform content growing, combined with India’s online viewership to touch 500 million. In 2020, the growth is going to be steady and now Content Distribution Networks will want a slice of the market.” 

Convergence of content creators, content providers, CDNs, telecom service providers and device manufacturers to deliver a seamless and personalised experience is bound to hold all participating parties in good stead. This is a good time to be a consumer in the Indian market because of the availability of more options, improvement in quality and quantity of content, and attractive pricing driven by competition. 

Industry Speak 

Karan Gupta, CEO, Alchemy Group:

“We are currently witnessing a shift in advertising budgets from TV to digital, with a focus on innovative ad models and personalised content. Advertisers are now taking a digital-first approach to generate high-quality leads and impactful campaigns. Home-grown OTT players and content creators across social platforms are expected to drive growth and dominate digital advertising though AI and data-driven marketing. This is primarily due to increased demand for authentic content and a lot of Content Distribution Networks (CDNs) coming into play to meet the increased demand and supply. The emergence of 5G and digital penetration will also amplify the rise in online content consumption in Tier 2 & Tier 3 cities resulting in increased digital content consumption and ad spends.” 

Viraj Sheth, Co-Founder and CEO, Monk Entertainment:

“Given that India has the cheapest data rates per GB of internet usage, will be adding 300 million fresh mobile Internet users, and a plethora of options to consume content curated for the Indian audiences, the Deloitte forecast report about digital & mobile marketing spends increasing in 2020 doesn’t come as a surprise to me. With an unlimited inflow of varied OTT and social media platforms and the content produced on them, mobile Internet users are spoilt for choice and will be spending longer durations of time on their phones. This is incentive enough for brands and marketers to invest heavily on digital, because attention is the new currency of 2020s.” 

Bharat Subramaniam, Managing Director, Big Trunk Communications:

“Going forward, it will be important for brands to identify their end objectives before building the foundation of their digital marketing strategy. While social media platforms are a great way to engage with your target audience, 2020 will witness a tectonic shift in the way brands will use curated and customised content outreach to drive their marketing strategies and enhance customer engagement. As we foresee the social trends, Instagram will be the preferred choice for its feature-rich advertising options and TikTok will rule for its content-rich vertical-format videos. Although moment-marketing has been catching up in the recent past, brand custodians and agencies will also have to consider the relevancy of being a part of such trends. Having said that, content is still going to be the king, but it will be important to bind all your digital marketing strategies together with a common thread, be it performance-led digital media campaigns or social media marketing for offering an immersive user experience and achieving digital omnipresence.” 

Vivek Pandey, VP - Revenue Strategy and Analytics, Times Internet:

“Digital Marketing is on a steep growth curve in 2020 as programmatic investments by brands will gather further momentum. Personalisation will be key to driving performance as marketers use behavioural data to drive higher efficiencies. This will be further complemented by a specific audience behaviour – the audience across Tier 2 and 3 cities are using their smartphones as their primary screen for media consumption. As more brands chase higher engagement and superior quality, the scale and influence of ad-led premium publishers like Times Internet will grow incrementally.”

Telecoms focus on 5G ecosystem 

5G private network deployments would be preferred connectivity choice of world’s largest enterprises. These enterprises are very likely to deploy private 5G networks driven largely by ultra-reliable, high speed and low latency connectivity features. 

Adoption of 5G in India will open new doors for innovation, leading to the development of inclusive and indigenous technologies by building R&D capabilities, developing home grown intellectual property across the telecom value chain, cross-sector convergence and design-led manufacturing. 

In 2020, it is also expected that a few of the largest elements of smartphone multipliers in India are to be hardware accessories, mobile advertising, and financial services. The mobile accessories market is estimated to grow at CAGR of 10.5 per cent and the total revenue potential for this sector is pegged at $3.6 billion in 2023. More than 70 per cent of the industry is estimated to be unorganised and this indicates a massive opportunity for all the committed brands to strengthen their foothold.


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